topic The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns Allowances, reject incorrectly. Is this an update error on IRS /TurboTax side? in Get your taxes done using TurboTax

The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns Allowances, reject incorrectly. Is this an update error on IRS /TurboTax side?

jayjones77 — Sun, 14 Mar 2021 22:19:11 GMT

Description of error:
Data in the return is missing or invalid. Please double check your entries.
What needs to be done: You have two options: 1) You may wait to e-file your return at a later date when the issue is fixed (that date is currently unknown). 2) You may print and file your return by mail at this time.

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

KathrynG3 — Sun, 14 Mar 2021 22:59:12 GMT

To proceed, check your entries and post any returns and allowances as a miscellaneous expense instead. You will need to delete any amount from Line 2 of Schedule C to keep the correct net income as reported.

To return to Schedule C, enter schedule c in the search box inside TurboTax. Select the Jump to link in the search results.

After at least one income type is listed, then Rebates and refunds will appear as an option under LESS COMMON INCOME.

Instead, list this in the last category of expenses, Other Miscellaneous Expenses.

For more information, see: Tax Guide for the Self-Employed: Everything You Need to Know | The TurboTax Blog

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

LadyGourmet — Mon, 15 Mar 2021 14:51:22 GMT

THANK YOU!!!

This worked for me and my transmission was ACCEPTED by the IRS.

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

MonaGayle1 — Mon, 15 Mar 2021 16:06:12 GMT

@LadyGourmet Did you make the changes directly to Schedule C or the Schedule C worksheet?

Just asking before I give it a try.

Thanks!!

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

LadyGourmet — Mon, 15 Mar 2021 16:06:36 GMT

I made the changes to the schedule C.

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

MonaGayle1 — Mon, 15 Mar 2021 16:20:20 GMT

@LadyGourmet (which version are you using)? I am not seeing the options on Schedule C

could you share a screenshot if possible? I can send my direct email if you'd like pls

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

MonaGayle1 — Mon, 15 Mar 2021 16:26:42 GMT

@LadyGourmet guess to clarify, I removed the entry from Line2 of schedule C, but do not see LESS COMMON INCOME section.

Thx!

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

LadyGourmet — Mon, 15 Mar 2021 16:40:41 GMT

@MonaGayle1 - I use the Home & Business version and the field actually the MISC section of the Schedule C. This is how I navigated to the section.

Business --> Walk me thru everything
Business Income and Expenses --> Select EDIT for your business entry
Scroll down to Business Expenses
Select "Other Common Business Expenses"
Last section/entry on this screen is "Other MISC Expenses". The amount removed from the other field was added here.

When I reran - no errors found. When I submitted - no immediate rejections. Received an email 20min later that the IRS accepted. Guess I won't know for a week or so if there is a TRUE issue with submitting this way. At least it wasn't rejected again.

Hope this helps....

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

MonaGayle1 — Mon, 15 Mar 2021 17:11:48 GMT

@LadyGourmet I definitely must be doing something totally wrong ... I have done this and still getting the immediate reject. I do not understand. Did you have to update TT for the hack to work?

I am using the Home & Business version too.

I would just be happy to not see the Reject. :(

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

LadyGourmet — Mon, 15 Mar 2021 17:23:16 GMT

@MonaGayle1 - Did you remove the value from Line 2 and add to the Other Expenses section? It would not be reported in both fields.

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

LadyGourmet — Mon, 15 Mar 2021 17:31:16 GMT

@MonaGayle1 - this is the original message from the other Tax Expert and the instructions I followed:

To return to Schedule C, enter schedule c in the search box inside TurboTax. Select the Jump to link in the search results.

After at least one income type is listed, then Rebates and refunds will appear as an option under LESS COMMON INCOME.

Instead, list this in the last category of expenses, Other Miscellaneous Expenses.

For more information, see: Tax Guide for the Self-Employed: Everything You Need to Know | The TurboTax Blog

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

MonaGayle1 — Mon, 15 Mar 2021 17:58:46 GMT

@LadyGourmet I promise you I am not being a butt; and I appreciate you for coming back to the original thread with the update!!

I'm probably too frustrated right now and can't see the forest for the trees.

Let me see if we are having the same issue, because maybe that could be the problem.

The exact error I get on the reject is " Total gross receipts or sales" cannot be a negative amount.

Was this the gist of your error?

Also, the link finally opened, but I did not see anything specific to this issue.

I guess I now need to know how to reach the tax expert you found the information from. That would be helpful as well.

Thanks again

Frustrated Filer 🙂

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

cewjr9842 — Mon, 15 Mar 2021 18:19:52 GMT

@LadyGourmet

So did you move the entry from Line 2 and add it to line 27a on the Schedule C?

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

LadyGourmet — Mon, 15 Mar 2021 18:58:43 GMT

YEP - this is exactly what I did. 🙂

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

LadyGourmet — Mon, 15 Mar 2021 19:02:04 GMT

@MonaGayle1 - this might be a part of the problem. My message was not the same as yours. But it sounds like they may be 'related' because it impacts the Schedule C.

The TAX EXPERT (via TurboTax) where I found this comment is listed below. Hopefully if you reach out she can help you as well.

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

cewjr9842 — Mon, 15 Mar 2021 19:13:37 GMT

@LadyGourmet

Thats weird, so when i take the amount that is in Line 2 remove it and add it to the total that is in line 27a I get the errors on my form for that amount and it says the errors in line 2 and line 27a are a problem.

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

LadyGourmet — Mon, 15 Mar 2021 19:30:01 GMT

@cewjr9842 - this is the ERROR message I received when the IRS was rejecting my returns:

The IRS has a processing issue that is triggering Schedule C, line 3, Gross Receipts Less Returns Allowances, to reject incorrectly.

I'm not sure if our situations are the same; but the suggested corrective action worked for me and it did not change the amount of refund/tax payment due. It provided me another way to report the same exact information.

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

cewjr9842 — Mon, 15 Mar 2021 20:52:48 GMT

@LadyGourmet

Yes, that is the exact same error I received. I am not sure why its not allowing me to make the exact same changes without giving me errors. I changed the value in Line 2 to 0 and then changed the took the value of Line 2 and added it to line 27a for the total but it states I have errors on those two lines. I also tried leaving it line 2 empty as well and still errors out.

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

LadyGourmet — Mon, 15 Mar 2021 20:55:52 GMT

Interesting...

Then I'm not exactly sure what the problem is for you. I just know that mine were "ACCEPTED" on the initial send. Hoping that it goes thru but the IRS can always come back and ask that I correct it. Right now its a "wait and see" period for me.

Just keeping my fingers crossed..

Re: The IRS has a processing issue that is trigger Sch C, line 3, Gross Receipts Less Returns All...

cewjr9842 — Mon, 15 Mar 2021 21:10:19 GMT

@LadyGourmet

Ok. I think i figured it out. I could not make the change from the actual form itself, I had to do it via the step by step, i was able to type all the refund item for line 2 into the miscellaneous fields and now line 2 and 3 are blank and I got no errors. I just submitted and crossing my fingers now awaiting an acceptance email. But we will see, thanks for your help and assistance on this. I will update if I am not accepted.